Utah State Tax Commission

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International Fuel Tax Agreement (IFTA)/Utah Special Fuel User

Records and Organization

Six essential pieces of information need to be extracted and collated from each trip report and fuel record before starting the return:

1. Each jurisdiction traveled in
2. Total miles traveled in each jurisdiction
3. Total number of gallons purchased in each jurisdiction
4. Type of fuel purchased (separate into two groups by fuel type i.e. diesel and other)
5. Total number of off-road miles traveled in each jurisdiction
6. Fuel tax paid gallons. Number of gallons purchased in each jurisdiction where fuel taxes have been paid.

Organizing and logging this information on a worksheet will save time and minimize confusion when completing the return. We developed an IFTA Trip Worksheet which illustrates the importance of organizing data from the trip reports.

The first exercise starts with a simple company operation. This exercise will help you familiarize yourself with the basic return (no bulk fuel, off-highway miles, or PTO). Exercise two builds on exercise one, and introduces additional parameters and bulk fuel. The third exercise adds more information, off-highway and PTO, which increases the complexity of the problem. When the third exercise is finished , you will have completed a return and both schedules. You may then complete a review exercise to test your skills.

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Individual Vehicle Mileage Records and Summaries

Acceptable records must have mileage data on individual vehicles for each trip. These records must reflect the miles each vehicle traveled in each jurisdiction. Mileage records need to separate Utah miles from non-Utah miles. Utah miles must be separated further into taxable (highway) and nontaxable (off-highway) miles. Individual vehicle mileage records must include the following information:

Date of trip (starting and ending) Trip origin and destination Total trip miles Mileage by jurisdiction Routes of travel Unit number or vehicle ID number

Beginning and ending odometer or hubometer Vehicle fleet number Registrant's name Power unit number or vehicle identification number Driver ID or name (optional) Intermediate trip stops (optional) Fuel purchased or drawn from bulk storage

Please Remember:

1. When listing locations and routes use the actual locations. For example, instead of Salt Lake City list exact address 1120 East 2100 South, Salt Lake City.
2. Do not use mileage from road maps, use actual miles traveled. If the trip starts from a business location on the West side of Salt Lake City and the driver travels into the middle of the city to pick up freight, these miles must be included. All miles must be documented, using road atlas mileage is not acceptable. Road atlas mileage is the shortest and most direct route between locations and does not reflect the actual mileage driven. Miles per gallon calculations will not be correct if road atlas mileage is used and all of the calculations will be wrong.

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Fuel Records - Over-the-Road Purchases

Complete records must be maintained for all fuel purchased, received, and used. All purchases must be supported by receipts or invoices, a credit card receipt or automated vendor generated invoice or transaction listing. These supporting documents must be retained by the licensee showing evidence of these purchases and that tax has been paid. These records may be kept on microfilm, microfiche or other computerized or condensed record storage system that meets the legal requirements of Utah as outlined in Tax Commission Rule R865-19S-22.

Taxable fuel reported as part of IFTA includes gasoline, diesel, propane, blended fuels (gasohol and ethanol), compressed natural gas, liquid petroleum, and kerosene. Separate totals must be compiled for each fuel type. Records for bulk fuel purchases must be maintained separately. Fuel purchase receipts should contain the following information:

The date of purchase or receipt of fuel Price per gallon or total amount of sale The name and address of the person from whom the fuel was purchased or received The number of gallons received

Purchaser's name The type of fuel The plate or ID number of the vehicle or equipment into which the fuel was placed

Be sure the vendor issues a correct invoice with the above information. Utah vendors are required to do so. Invoices must show that the fuel tax was paid in order to support the credit taken on the IFTA return for "tax-paid gallons".

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Bulk Storage Fuel Records

Detailed records of fuel withdrawals from licensee-owned, tax-paid bulk storage must be maintained. To obtain credit these records must include:

Date of withdrawal Unit number of vehicle Number of gallons

Purchase and inventory records to substantiate that tax was paid on all bulk fuel purchases Fuel type

Records must distinguish between fuel placed into qualified vehicles and other uses. Special fuel that is exempt from fuel tax (non-highway, PTO, etc.) in Utah is subject to Utah sales and use tax.

In Utah, fuel tax should be charged at the time of purchase of undyed diesel fuel. Sales tax will be charged on dyed diesel fuel. If the taxpayer qualifies for a tax exempt purpose, the tax may be refunded. To claim the refund, complete TC-922B, IFTA/Special Fuel User Tax Return. Copies of all delivery tickets and receipts must be maintained, including details on all disbursements.

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